FSA opens the doors to mortgage and general insurance firms

To cope with the expected demand, the FSA has streamlined its authorisation process. From today, firms are able to register for an application pack which contains re-designed application forms and plenty of guidance. The FSA will start accepting completed application forms from mid-January 2004.

Firms can register online for their application pack or order one from a dedicated FSA Contact Centre on 0845 60 555 25.

Sarah Wilson, FSA Director of High Street Firms, said:

"Regulation is around the corner and all firms need to act now to ensure they are ready in time.

"Firms have two main choices to be come directly authorised by the FSA or to become an Appointed Representative of an authorised firm, known as a principal. Firms that want to become directly authorised by the FSA can register now to receive their application packs. This gives them a couple of months to consider the form, work out what they need to do and get any help they need from us. We then expect to start receiving completed applications from mid-January.

We are providing firms with lots of help throughout the authorisation process - from our dedicated website and contact centre to a countrywide series of roadshows.

I would urge firms to apply early and electronically. We are expecting many thousands of firms to apply, and it will be in everyone's interests to avoid a last minute rush to get authorised."

How the FSA can help:

• For everything you need to know about your choices and to see the questions other firms are asking, visit our mortgage and general insurance website;

• Look at the sample application form on the website so that you can see the kind of information that you will need to start gathering and the plans you need to start making to be compliant by the time regulation starts;

• If you cant find the answer to your question, call the FSA Contact Centre our team is ready to help you;

• Meet the FSA face to face at roadshows around the country. See the website for details of dates and venues.

Key dates to put in your diary

November 2003: Register for application pack online or by telephone

Mid-January 2004: FSA due to start accepting application forms

31 March 2004: Deadline for mortgage firms wanting to qualify for early application discount

31 May 2004: Deadline for general insurance firms wanting to for early application discount

31 October 2004: Mortgage regulation starts

14 January 2005: General insurance regulation starts

Notes for editors

1. Firms which are already authorised by the FSA will need to apply for a variation of permission. Details are available here or their usual regulatory contact.

2. Those firms that wish to become an Appointed Representative of an authorised firm (principal) should establish who their principal might be and start sorting out their contractual arrangements. Principals are responsible for ensuring their Appointed Representative/s comply with FSA requirements. A firm cannot be FSA authorised and an Appointed Representative at the same time. For more details see here.

3. The FSA is continually refining its estimates of the number of firms it is expecting to apply for direct authorisation or to vary their existing permissions. The latest estimate, published in PS 180, is 25,000.

4. The FSA regulates the financial services industry and has four objectives under the Financial Services and Markets Act 2000: maintaining market confidence; promoting public understanding of the financial system; securing the appropriate degree of protection of consumers; and fighting financial crime.

5. The FSA aims to maintain efficient, orderly and clean financial markets and help retail consumers achieve a fair deal.